Bank loans in Korea slightly climb 0.5% m-m to KRW1,151tn in July

While large corporate loans remained flat.

Bank loans in Korea July rose 0.5% m-m (+4.2% YTD, +6.0% y-y) to KRW1,151tn in July.

According to a research note from Nomura, meanwhile, corporate loan rose 0.4% m-m (+5.7% YTD, +6.9% y-y).

Large corporate loans remained flat m-m (+9.0% YTD, +7.5% y-y) as a larger portion of companies’ refinancing (after end-of-first-half redemption in June) was done through corporate bond issuance.

SME loans rose 0.5% m-m (+4.6% YTD, +6.7% y-y) in July, the report also mentioned.

Household loans notched up by 0.6% m-m (+2.4% YTD, 4.7% y-y) in July, helped by 0.8% m-m growth in housing mortgage loans (+3.7% YTD, +6.3% y-y) from increased property transactions.

Here’s more from Nomura:

According to the Ministry of Land, Infrastructure and Transport, apartment transaction volume rose 5.1% m-m to 76,850 units in July, after decreasing by 6% m-m in June.

General household loan (not-mortgaged) growth slowed to 0.2% m-m (-0.5% YTD, 1.3% y-y) in July, as employers paid out vacation bonus.

Bank deposits decreased by 0.6% m-m (+2.9% YTD, +5.7% y-y).

Time & savings deposit rose 0.2% m-m (+3.3% YTD, +4.9% y-y).

Demand deposits decreased 7.7% m-m (-1.0% YTD, +14.1% y-y).